GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	2 

HOUSE BILL 1098
Committee Substitute Favorable 5/6/93

Short Title:  Ads in Written Periodicals.	(Public)
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Referred to:  
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April 19, 1993

A BILL TO BE ENTITLED
AN ACT TO REQUIRE CONTRACTS FOR THE PURCHASE OF ADVERTISING IN FOR-PROFIT WRITTEN PERIODICALS TO INCLUDE CERTAIN TERMS, INCLUDING A STATEMENT OF THE CIRCULATION OF THE PERIODICAL, AND TO PROVIDE REMEDIES FOR THE PURCHASER IN THE EVENT THE SELLER FAILS TO COMPLY.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 66 of the General Statutes is amended by adding a new Article to read: 
"ARTICLE 32.
"Contracts for the Purchase of Advertising
in For-Profit Written Periodicals.
"§ 66-250.  Contractual requirements.  
(a)	Every contract for the purchase of advertising in a for-profit written periodical shall be in writing, dated, signed by the purchaser, and shall include:
(1)	A statement of the current circulation of the periodical.
(2)	The terms and conditions of payment, including the total of all payments to be made by the purchaser.
(b)	Upon the request of the purchaser, the seller shall supply the purchaser with proof of the circulation.
(c)	The seller shall notify the purchaser when the circulation of the periodical decreases by ten percent (10%) or more from the circulation of the periodical at the date the contract was entered into.
(d)	The provisions of this section may not be waived or modified by the agreement of the parties.
(e)	As used in this section, 'circulation' does not include unpaid distribution in public places. A seller shall not include unpaid distribution in public places in any statement of circulation required in this section unless those figures are presented separately and so labeled. A seller shall not include unpaid distribution in public places in the calculation required for subsection (c) of this section.
"§ 66-251.  Remedies.  
(a)	Any seller of advertising in a for-profit written periodical who violates any provision of this Article is liable to the purchaser in an action brought by the purchaser for liquidated damages, plus reasonable attorneys' fees.  Liquidated damages shall be in an amount equal to three times the value of all payments to be made by the purchaser for the duration of the contract.
(b)	A violation of G.S. 66-250 shall constitute an unfair practice under G.S. 75-1.1.
(c)	When the contract is for a duration of six months or more and the purchaser receives a notice under G.S. 66-250(c), the contract is voidable or may be renegotiated, at the option of the purchaser.
(d)	The remedies provided under this section are in addition to any other remedies, but the damages assessed shall not exceed the largest amount of damages available by any single remedy."
Sec. 2.  This act becomes effective October 1, 1993, and applies to any contract entered into or extended or renewed on or after that date.